National Minimum Wage has increased – a refresher on the changes

The National Minimum Wage increased by $40 per week on 1 July, which amounts to an increase of 5.2 per cent. Award minimum wages have increased by 4.6 per cent, which are subject to a minimum increase for adult award classifications of $40 per week and based on a 38-hour week for a full-time employee.

 

Other award wages, including junior, apprentice and supported wages that are based on adult minimum wages, will get a proportionate increase. 

 

At 4.6 per cent, the increase in the Modern Award minimum wages this year is higher than in previous years, reflecting the unusual economic circumstances that the country finds itself in. 

 

The increases relevant to the early childhood education and care (ECEC) sector will come into effect on 1 July 2022 with those team members on the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010 seeing the 4.6 per increase passed through in their next fortnight pay post 1 July. 

 

The increase is expected to see a Certificate III in Children’s Services Level 3.1 educator now earning $24.74 an hour (up from $23.09 last year) and a Diploma in Children Services Level 4.1 educator earning $29.17 an hour (up from $27.89 last year.)

 

Level 1 Early Childhood Teachers are expected to see their weekly rates increase to $1,223.50 (up from $1,169.70) after the introduction of the new Award structures. 

 

These estimates are indicative only, and employees are encouraged to check with individual payroll teams to confirm the details. 

 

Educators who are interested to learn their new pay rates can:

 

• Use the Fair Work Pay and Conditions Tool to calculate their new rate of pay
• go to Fair Work’s Pay guides page to access the updated pay guide for their award.

 

Learn more about the minimum wage increase at Minimum wages increase from 1 July 2022 using this primer. 

 

These pay rate increases follow the Fair Work Commission Annual Wage Review 2021-22.

 

Other 1 July 2022 changes of note include: 

 

• high income threshold and compensation cap
• superannuation changes
• end of unpaid pandemic leave in many awards. 

 

Find out more about these changes using this link: Minimum wages increase from 1 July 2022.